Sport Obermeyer
Sport Obermeyer case study
Name: Dhruv Bhatt
Member ID: 6000919
Date: 24 October 2014
Executive Summary:
For this case, we will focus on the skiwear part of the Obermeyer business. It has a current cycle time of 27 months. Skiwear market is just four months long but the design and production process takes over 16 months to complete.
Out the 27 months cycle, Obersport has 6 months to purchase, produce and deliver the products for winter selling in North America. Obersport is located in the Far East and currently his supplier lead-times is are really long and minimum orders is quite high. Currently, everybody in this global supply is really stretched to the limit to supply for the season. There is a high risk of inventory build-up and stock outs. This will pretty much affect the profitability and customer satisfaction.
Sport Obermeyer is currently operating in an environment where the planning and production cycle occurs almost two years in advance. This increases the uncertainty of demand, thus making accurate forecasting extremely difficult.
Issue Identification:
We can focus on some of the challenges or problems
Projecting challenge: Company can estimate the demand for different styles only after Las Vegas show. Production normally starts 5 months prior to the fashion show in order to meet the market demand. Most retailers send their order after 12 months in production. This condition will force Sport Obermeyer to forecast the demand from their previous experience and knowledge.
Product Challenges: Sport Obermeyer is very popular fashion Skiwear Company. There are competitors like Columbia and North face in market. With lower price and lots of verity, Columbia leads the adult skiwear market. Sport Obermeyer holds big market for children and female skiwear. Sport Obermeyer has broad line of styles; sizes and colors make demand projection and production of the products much more challenging compared to their
Name: Dhruv Bhatt
Member ID: 6000919
Date: 24 October 2014
Executive Summary:
For this case, we will focus on the skiwear part of the Obermeyer business. It has a current cycle time of 27 months. Skiwear market is just four months long but the design and production process takes over 16 months to complete.
Out the 27 months cycle, Obersport has 6 months to purchase, produce and deliver the products for winter selling in North America. Obersport is located in the Far East and currently his supplier lead-times is are really long and minimum orders is quite high. Currently, everybody in this global supply is really stretched to the limit to supply for the season. There is a high risk of inventory build-up and stock outs. This will pretty much affect the profitability and customer satisfaction.
Sport Obermeyer is currently operating in an environment where the planning and production cycle occurs almost two years in advance. This increases the uncertainty of demand, thus making accurate forecasting extremely difficult.
Issue Identification:
We can focus on some of the challenges or problems
Projecting challenge: Company can estimate the demand for different styles only after Las Vegas show. Production normally starts 5 months prior to the fashion show in order to meet the market demand. Most retailers send their order after 12 months in production. This condition will force Sport Obermeyer to forecast the demand from their previous experience and knowledge.
Product Challenges: Sport Obermeyer is very popular fashion Skiwear Company. There are competitors like Columbia and North face in market. With lower price and lots of verity, Columbia leads the adult skiwear market. Sport Obermeyer holds big market for children and female skiwear. Sport Obermeyer has broad line of styles; sizes and colors make demand projection and production of the products much more challenging compared to their